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NY N003365




December 20, 2006

CLA-2-61:RR:NC:TA:N3:356

CATEGORY: CLASSIFICATION

TARIFF NO.: 6105.10.0010

Mr. Emilio Jose Herrera
Trans America Textil El Salvador, S.A. de C. V. Kilometer 30½ of the Highway that leads to the Salvadoran International Airport Olocuilta, Department of La Paz
Building 7A, Miramir Free Zone
El Salvador

RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA) of a men’s knit shirt from El Salvador.

Dear Mr. Herrera:

In your letter dated October 31, 2006, you requested a tariff classification ruling concerning the status of a men’s knit shirt under the DR-CAFTA. As requested, your sample will be returned.

Style PH-3202-51 is a men’s polo-style shirt constructed from 100% cotton, finely knit, pique fabric that measures 10 stitches per linear centimeter counted in the horizontal direction and 17 stitches per linear centimeter counted in the vertical direction. Style PH-3202-51 features a rib knit spread collar, a partial front opening with three button closures, short sleeves with rib knit cuffs, an appliqué on the left chest, and a hemmed bottom with side slits and a tail.

The question you present is whether Style PH-3202-51 is eligible for preferential treatment under the DR-CAFTA. You have described the manufacturing and assembly of the garment as follows:

Style PH-3202-51 will be cut and wholly assembled in El Salvador from fabric knit in El Salvador from yarns wholly formed in the United States.

The garment will be assembled using sewing thread that is formed and finished in Honduras.

The applicable subheading for Style PH-3202-51 will be 6105.10.0010, Harmonized Tariff Schedule of the United States, (HTSUS), which provides for: men’s or boys’ shirts, knitted or crocheted: of cotton: men's. The duty rate is 19.7% ad valorem.

Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.

Style PH-3202-51 falls within textile category designation 338. With the exception of certain products of China, quota/visa requirements are no longer applicable for merchandise which is the product of World Trade Organization (WTO) member countries. The textile category number above applies to merchandise produced in non-WTO member-countries. Quota and visa requirements are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information on quota and visa requirements applicable to this merchandise, we suggest you check, close to the time of shipment, the “Textile Status Report for Absolute Quotas” which is available on our web site at www.cbp.gov. For current information regarding possible textile safeguard actions on goods from China and related issues, we refer you to the web site of the Office of Textiles and Apparel of the Department of Commerce at otexa.ita.doc.gov.

General Note 29(b), HTSUS, sets forth the criteria for determining whether a good is originating under DR-CAFTA. General Note 29(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that

For the purposes of this note, subject to the provisions of subdivisions (c), (d), (m) and (n) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good under the terms of this note if--

(i) the good is a good wholly obtained or produced entirely in the territory of one or more of the parties to the agreement;

(ii) the good was produced entirely in the territory of one or more of the parties to the agreement, and--

(A) each of the non-originating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (n) of this note; or

(B) the good otherwise satisfies any applicable regional value content or other requirements specified in subdivision (n) of this note; and the good satisfies all other applicable requirements of this note; or

(iii) the good was produced entirely in the territory of one or more of the parties to the Agreement exclusively from originating materials.

General Note 29 (n) 61.25 requires:

A change to headings 6105 through 6106 from any other chapter, except from headings 5111 through 5113, 5204 through 5212, 5310 through 5311, chapter 54, headings 5508 through 5516 or 6001 through 6006, provided that the good is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of one or more of the parties to the Agreement.

General Note 29 (n), Chapter 61, Chapter rule 4 states that:

Notwithstanding chapter rule 2 to this chapter, a good of this chapter containing sewing thread of headings 5204, 5401 or 5508 shall be considered originating only if such sewing thread is both formed and finished in the territory of one of more of the parties to the Agreement.

Style PH-3202-51 was cut and sewn in El Salvador from fabric knit in El Salvador from yarns of U.S. origin. The sewing thread used in the production of the garments is classifiable in item 5401.10.0000, HTSUS and is formed and finished in Honduras. Effective March 1, 2006, El Salvador became eligible for DR-CAFTA benefits. On April 1, 2006, Honduras became eligible for DR-CAFTA benefits. Consequently, the merchandise qualifies for preferential treatment under DR-CAFTA because it meets the requirements of General Note 29 (n), Chapter 61, rule 4, and rule 61.25.

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). A copy of this ruling letter or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding this ruling, contact National Import Specialist Mary Ryan at 646-733-3271.

Sincerely,

Robert B. Swierupski, Director
National Commodity Specialist Division


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